Quarterly Letters To Clients
In a year that was dominated by a series of new all-time highs, it is dizzying how quickly blue skies turned to gray for the U. S. stock market. From its September 20 record high, reached just over three months ago, the S&P 500 dropped about 20% through Christmas Eve, before recovering somewhat in the final week of the year.
Medley & Brown Commentary
In 1972, Thomas Phelps, a former partner in the investment firm of Scudder, Stevens and Clark, wrote a book on investing in common stocks and titled it 100 to 1 In the Stock Market. (Mr. Phelps’ book now sells as a classic on eBay.) Phelps provided information on common stocks in the United States that grew $10,000 of investor money into $1 million, using a time frame of 1932 through 1967. Many of the names are familiar. Sears, Roebuck went from $12.50 in 1933 to $2499 in 1973. Eastman Kodak, $46 to $6480 in 1971. (Capitalism got the better of these two. Today, Sears sells for $0.90 and Kodak, $3.14.) Xerox, $47.50 in 1958 became $7605 in 1971. Some math: If a stock has an average increase in value of 10% annually, it will make 100-to-1 in 49 years. At 12%, it takes 41 years. In his book, written in 1972, Phelps lists 365 companies that hit 100-to-1 or better during the preceding 35 years.
During the 1980s and 1990s, I was active in the national association for Certified Financial Planners, and one of the more popular programs of the association was a four-day financial planning conference held each summer on a college campus. In 1993, I was asked to be the co-dean of the conference to be held at Carroll College near Milwaukee, Wisconsin, and one of my tasks was to secure the keynote speaker. In my financial planning practice, I had a long history with the Vanguard group of mutual funds, and I decided to ask the head of Vanguard, John Bogle, to speak. After much wrangling—his first question was “What’s a CFP?”—he agreed.
Meet Our Team
Tim C. Medley
Tim Medley has been in the investment business since 1967, founded the predecessor to our firm in 1988, and was the first person in the State of Mississippi to be awarded the CFP® certification.View Profile
Eddie Carlisle, CFP® joined Medley & Brown, LLC, in May 2006, having previously practiced law for five years at Watkins & Eager, PLLC.
Eddie serves as the firm's Chief Compliance Officer.View Profile
Doug Muenzenmay, CFA, CFP® joined Medley & Brown, LLC, in April 2010. Doug has 24 years of capital markets experience including portfolio management for individuals, institutions and endowments.View Profile
Julius Ridgway, CFA joined Medley & Brown, LLC, in July 2002. He has over 15 years of direct investment experience, and spent the previous ten years involved in various aspects of financial services, banking and real estate.View Profile
Quotes & Commentary
Come what may, we continue to believe that Sequoia owns a carefully selected collection of businesses whose aggregate quality, growth prospects and valuation make them a much more appealing investment than the crowd of 500 companies that comprise the [S&P 500] Index.